Mass General Brigham, formerly Partners HealthCare, is cutting executive pay and benefits as they project $2 billion in losses by the end of the year due to the coronavirus pandemic.
Through May, the company has lost approximately $800 million in patient service revenue, according to a spokesperson.
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To address the loss, Mass General Brigham is reducing executive and senior leadership compensation and suspending pay increases and retirement benefits for all employees who make more than $26.50 per hour.
Executives across the system are getting a 25% pay cut for one year, starting July 1, through June 30, 2021, with other salaries for other senior leaders reduced by 5% to 20% during the same time period.
"Like other health care systems in the region and throughout the country, Mass General Brigham has experienced significant financial challenges," a spokesperson said. "We are committed to minimizing the financial impact of the pandemic on our 78,000 employees and remain grateful for the extraordinary work they do."
The cuts will save about $500 million, according to a statement from the company, which noted that they had taken other cost savings measures, including suspending capital projects, instituting a hiring freeze for non-clinical positions and limiting other spending. To date, the company has avoided any layoffs or furloughs.
"We could not be prouder of the way employees throughout the Mass General Brigham system responded to the extraordinary challenges presented by the COVID-19 pandemic," a spokesperson said. "We continue to support our patients, employees and communities throughout this difficult time as we continue reopening programs and services throughout the system."
Employees earning less than $26.50 per hour will be excluded from the pay increase suspension and will receive a special 403(b) contribution, representing nearly 20,000 people in the workforce.
"We must do more to restore our system’s financial health, so that we are able and prepared to address the needs of our patients and communities in the future," the statement said.